Transocean has been down over 5% the past two days and has surpassed are stop loss limit. The reason for the drop in price is due to the explosion of a rig off the Gulf Coast. Going forward I have redone the model and factored in the loss of the rig for this year- its contract was scheduled to start in the 4th quarter- and next year. These losses will have an eps impact projected of $.10 this year and $.40. From what I have read and what information there is about the companies contracts and insurance it seems insurance will cover must of the cost of replacing the Rig. Further more it seems that Transocean will not be responsible for the oil spill but rather BP as stated by President Obama, however I am unsure. Personally I think Transocean is currently trading at a severe discount do to market over reaction.
Any question email me at
James.Menicucci@gmail.com
Friday, April 30, 2010
Thursday, April 29, 2010
VISA Q2
Analysts were expecting Visa, Inc. (V) earnings to come in at $0.91 per share for last quarter, but V beat expectations with actual earnings of $0.96---5 cents above the consensus estimate.
Today's announcement shows that V has made some year-over-year improvements. The company reported gains of $808.55 million last quarter compared with net gains of $614.84 million during the same quarter a year ago.
During the next five years, analysts expect the earnings-per-share (EPS) growth rate in the industry to be 16.79 percent. If you compare V's projected EPS growth rate of 20 percent to that of the industry, you can see that analysts expect V to outperform the industry in the future by 3.21 percent.
Visa has beaten expectations every earnings season since we have purchased this stock in April of 2009. The company has projected EPS growth of 20% over the next few years and Visa is currently on on track to do this. They have already reported $2.00 per share for half of this year and will beat the $3.10 Visa earned for FY 2009.
-Richie Civello
Today's announcement shows that V has made some year-over-year improvements. The company reported gains of $808.55 million last quarter compared with net gains of $614.84 million during the same quarter a year ago.
During the next five years, analysts expect the earnings-per-share (EPS) growth rate in the industry to be 16.79 percent. If you compare V's projected EPS growth rate of 20 percent to that of the industry, you can see that analysts expect V to outperform the industry in the future by 3.21 percent.
Visa has beaten expectations every earnings season since we have purchased this stock in April of 2009. The company has projected EPS growth of 20% over the next few years and Visa is currently on on track to do this. They have already reported $2.00 per share for half of this year and will beat the $3.10 Visa earned for FY 2009.
-Richie Civello
Low Refining Margins Hurt Valero (VLO)
Valero reported first quarter earnings on Tuesday. Results were less than impressive at a loss of $101M $0.18 per share. This result beat the $0.27 consensus loss of the 16 analysts covering. Valero's operating loss was $32 million, versus first quarter 2009 operating income of $593 million. This decline in operating income can be attributed to lower margins on their refined products across all regions. Operating results were also negatively impacted by downtime in some of their key refineries, which management estimates resulted in $200M of lost income. Despite the rough operating environment, Valero managed increase their liquidity position by $4B. Management also purchased an additional 3 plants this quarter, which brings their total to 10, increasing their capacity to 1.1 Billion barrels a year.
For the second quarter and the rest of 2010, management expects to be profitable. They believe that their cost savings initiatives and strategic actions will help them achieve profitability, even if they continue to operate in a low margin environment.
I am planning on locating the original model and updating it and making a decision going forward.
- Thomas Boeje
For the second quarter and the rest of 2010, management expects to be profitable. They believe that their cost savings initiatives and strategic actions will help them achieve profitability, even if they continue to operate in a low margin environment.
I am planning on locating the original model and updating it and making a decision going forward.
- Thomas Boeje
Wednesday, April 28, 2010
Caterpillar First Quarter Earnings 2010
Caterpillar reported 1st quarter earnings of $.36 per share or $233 million compared to a loss of $.19 per share or $112 million 1st quarter 2009. Caterpillar's estimated earnings were $.39 per share and would have beaten the forecast although they were charged a one time health care of $90 million. Excluding this one time charge Caterpillar would have posted earning of $.50 a share beating the estimate of $.39 per share. Sales fell 11% to 8.2 billion but in Asia sales rose 20%. Manufacturing costs were $566 million lower which helps profits as sales declined.
Chairman and CEO of the company stated that industry activity and orders are higher compared to last year and record level in some areas. Caterpillar is increasing it's production as a result of the increase in demand. This jump in demand is mostly in developing areas like Asia and Latin America and mining equipment worldwide.Higher commodity prices will drive the demand for mining equipment to increase. Caterpillar officials said that some models of 2010 mining equipment are sold out and they are already taking orders for 2011 equipment. The company has hired about 2,000 people after releasing 19,000 full-time employess. CAT's 2nd quarter earnings are estimated to be $.74 per share. The company raised their outlook for 2010 raising sales and revenues range from $38 to $42 billion and profit expectations for 2010 to be between $2.50 to $3.25 per share. The outlook for CAT is looking up and I think it will continue to perform well.
-Jared Duckstein
Chairman and CEO of the company stated that industry activity and orders are higher compared to last year and record level in some areas. Caterpillar is increasing it's production as a result of the increase in demand. This jump in demand is mostly in developing areas like Asia and Latin America and mining equipment worldwide.Higher commodity prices will drive the demand for mining equipment to increase. Caterpillar officials said that some models of 2010 mining equipment are sold out and they are already taking orders for 2011 equipment. The company has hired about 2,000 people after releasing 19,000 full-time employess. CAT's 2nd quarter earnings are estimated to be $.74 per share. The company raised their outlook for 2010 raising sales and revenues range from $38 to $42 billion and profit expectations for 2010 to be between $2.50 to $3.25 per share. The outlook for CAT is looking up and I think it will continue to perform well.
-Jared Duckstein
Tuesday, April 27, 2010
Life Technologies beats forecast
* Q1 ex-items $0.87/shr vs. forecast of $0.80/shr
* Q1 revenue $887 mln vs. forecast of $864 mln
* Shares rise 1 pct after-hours
NEW YORK, April 27 (Reuters) - Life Technologies Corp (LIFE.O) on Tuesday reported better-than-expected first-quarter earnings, on strong demand for its tools and equipment used in genetic testing and stem cell research.
The company earned $91.5 million, or 48 cents per share, compared with $15.6 million, or 9 cents per share, in the year-earlier period.
Excluding special items, Life Technologies said it earned 87 cents per share. Analysts on average expected 80 cents per share, according to Thomson Reuters I/B/E/S.
The company reported revenue of $887 million, well above Wall Street expectations of $864 million.
Life Technologies, created by the merger of Invitrogen and Applied Biosystems, said it expects full-year revenue to grow in the mid-to high-single digit percentage range. It predicted 2010 earnings, excluding special items, of $3.30 to $3.50 per share, in line with Wall Street expectations of $3.41 per share.
Shares of the company rose 1 percent in after-hours trading to $51.69 from their closing share price on Tuesday of $51.15 on the Nasdaq. (Reporting by Ransdell Pierson; Editing by Bernard Orr)
This is just a copy and paste job. I will review the numbers in detail tonight and repost an analysis of results and explain affects on my price target.
----- Michael Arias
* Q1 revenue $887 mln vs. forecast of $864 mln
* Shares rise 1 pct after-hours
NEW YORK, April 27 (Reuters) - Life Technologies Corp (LIFE.O) on Tuesday reported better-than-expected first-quarter earnings, on strong demand for its tools and equipment used in genetic testing and stem cell research.
The company earned $91.5 million, or 48 cents per share, compared with $15.6 million, or 9 cents per share, in the year-earlier period.
Excluding special items, Life Technologies said it earned 87 cents per share. Analysts on average expected 80 cents per share, according to Thomson Reuters I/B/E/S.
The company reported revenue of $887 million, well above Wall Street expectations of $864 million.
Life Technologies, created by the merger of Invitrogen and Applied Biosystems, said it expects full-year revenue to grow in the mid-to high-single digit percentage range. It predicted 2010 earnings, excluding special items, of $3.30 to $3.50 per share, in line with Wall Street expectations of $3.41 per share.
Shares of the company rose 1 percent in after-hours trading to $51.69 from their closing share price on Tuesday of $51.15 on the Nasdaq. (Reporting by Ransdell Pierson; Editing by Bernard Orr)
This is just a copy and paste job. I will review the numbers in detail tonight and repost an analysis of results and explain affects on my price target.
----- Michael Arias
Ecolab Delivers Strong First Quarter Earnings
Ecolab reported 1Q 2010 earnings this morning. EPS was $0.40, up 67% quarter over quarter. This exceeded the top of Ecolab’s forecasted range. Net income attributable to shareholders increased 66% to $96 million. Adjusted EPS forecast for the year was raised to $2.21-2.26. Previous forecast was $2.17-2.25. My model has them earning $2.22 in 2010.
Sales were up 6% to $1.4 billion. They saw strong sales growth from Kay, Asia Pacific, Canada, and Latin America, along with cost savings actions and favorable delivered product costs.
Segments US Cleaning and Sanitizing and US Other Services operating income both rose 11% while International Operations operating income rose 81%.
Ecolab reacquired 3.3 million shares of its common stock during the first quarter under its share repurchase program.
Commenting on the quarter, Douglas M. Baker, Jr., Ecolab's Chairman, President and Chief Executive Officer said, "We are off to a good start in 2010. We once again outperformed our end markets, and through our aggressive sales efforts, cost savings and efficiency actions, we turned in a strong earnings gain that exceeded the top end of our forecasted range.
"We are confident in our prospects for 2010. Our markets are generally showing expected improvement from 2009's difficult environment, and we are stepping up our investments to drive growth within them. These investments include expanding our sales and service force, developing new innovative products and programs that provide better results and lower operating costs for customers, building infrastructure in key geographies to enable faster and more efficient growth and profitability, and looking at new ways to better serve our strong customer base. We are seeing returns from these investments today and expect much more as they progress, providing not only strong results in 2010 but positioning us for even better results in the years ahead. We believe we are in solid shape for the year, we continue to make progress on our long term growth initiatives, and we expect to continue delivering superior results for shareholders in 2010 and beyond."
Going forward, Ecolab expects 2nd quarter 2010 EPS of $0.54-0.57 with a gross margin of 50% and tax rate of 30-31%. My model remains unchanged at a price target of $52. The company is doing well, but based on the current price of $47.13 (down 1% in reaction to a market correction), there is only 10% upside. If opportunities arise for a company with more upside, I would be supportive of selling in order to free up cash.
Sales were up 6% to $1.4 billion. They saw strong sales growth from Kay, Asia Pacific, Canada, and Latin America, along with cost savings actions and favorable delivered product costs.
Segments US Cleaning and Sanitizing and US Other Services operating income both rose 11% while International Operations operating income rose 81%.
Ecolab reacquired 3.3 million shares of its common stock during the first quarter under its share repurchase program.
Commenting on the quarter, Douglas M. Baker, Jr., Ecolab's Chairman, President and Chief Executive Officer said, "We are off to a good start in 2010. We once again outperformed our end markets, and through our aggressive sales efforts, cost savings and efficiency actions, we turned in a strong earnings gain that exceeded the top end of our forecasted range.
"We are confident in our prospects for 2010. Our markets are generally showing expected improvement from 2009's difficult environment, and we are stepping up our investments to drive growth within them. These investments include expanding our sales and service force, developing new innovative products and programs that provide better results and lower operating costs for customers, building infrastructure in key geographies to enable faster and more efficient growth and profitability, and looking at new ways to better serve our strong customer base. We are seeing returns from these investments today and expect much more as they progress, providing not only strong results in 2010 but positioning us for even better results in the years ahead. We believe we are in solid shape for the year, we continue to make progress on our long term growth initiatives, and we expect to continue delivering superior results for shareholders in 2010 and beyond."
Going forward, Ecolab expects 2nd quarter 2010 EPS of $0.54-0.57 with a gross margin of 50% and tax rate of 30-31%. My model remains unchanged at a price target of $52. The company is doing well, but based on the current price of $47.13 (down 1% in reaction to a market correction), there is only 10% upside. If opportunities arise for a company with more upside, I would be supportive of selling in order to free up cash.
Travelers Take Hit on CAT losses
Net income dropped 2.6% to $647 million for Travelers due to higher catastrophe losses from the winter storms on the U.S. East Coast and the earthquake in Chile. Catastrophe losses of $312 million were five times what the company projected and the largest since the company merged in 2004. Operating profit of $1.22 was below the street estimate of $1.36. Investment income rose 39% from the previous year when the company had to take large write downs. Net earnings per share were $1.25 from $1.11 a year ago due to fewer shares outstanding. Travelers is expected to continue their share buyback program with $3.5-4 billion scheduled for this year alone. Dividends also increased 9% for the sixth straight quarter. Travelers is a solid company but we haven't seen much movement in the price since we bought it last December and has dropped a dollar from our buy-in price. If opportunities arise for a company with more upside I would be supportive of selling.
Subscribe to:
Posts (Atom)